Israeli equities surged to fresh records on Sunday after the United States carried out air-strikes on key Iranian nuclear facilities, joining Israel’s week-old campaign against Tehran. The broad TA-125 Index closed 1.8% higher, while the blue-chip TA-35 gained 1.5%, extending a six-session rally that has added about 6% since Israeli forces began striking Iran on 13 June. The market is now roughly 45% above its level a year ago. Government bond prices edged up and traders noted further strength in the shekel, reflecting expectations that U.S. military involvement will curb Iran’s nuclear ambitions and reduce security risks for Israel. “The destruction of Iran’s key nuclear facilities is a game-changer,” said Mizrahi Tefahot chief markets economist Ronen Menachem, citing the prospect of a more secure regional environment and deeper ties between Israel, the United States and Gulf states. The positive tone in Tel Aviv contrasted with weakness across much of Asia on Monday. India’s Sensex fell as much as 705 points, or 0.85%, to 81,702.52 in early trade, while the Nifty 50 slipped 182 points to 24,929.55. All 13 NSE sectoral gauges opened lower, led by information-technology shares, and the India VIX volatility index climbed to 14.04. Analysts attributed the divergence to higher oil prices—crude briefly hit a five-month high— and concerns that Iran could threaten shipping through the Strait of Hormuz, a key conduit for global energy supplies. Market strategists warned that a wider conflict would pose renewed downside risks for risk-assets even as some investors see an opportunity in Israeli assets after Washington’s intervention.